An international coalition led by New York University will launch the school. Students will explore how technology can solve the problems facing cities.
The Center for Urban Science and Progress will take over a city-owned building in downtown Brooklyn.
It will pay $50 million to the Metropolitan Transportation Authority, which is currently using the space. The school will get $15 million in city tax incentives.
In December, Bloomberg announced the competition's first winner. Cornell University and an Israeli university will build a $2 billion facility on Roosevelt Island.
Mayor Michael Bloomberg and New York University President John Sexton made the announcement on Monday.
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